Allegheny Technologies today reported a second-quarter loss, as costs related to a new processing plant in Brackenridge and the Pittsburgh specialty metal producer‘s titanium sponge plant in Utah offset higher sales.
The company said it lost $4 million, or 3 cents per share, during the quarter, versus a profit of $4.4 million, or 4 cents per share, in the same quarter a year ago. Sales rose 6 percent to $1.12 billion.
Analysts had expected the specialty metals producer to break even on sales of $1.06 billion.
The results include $4 million in costs related to a rolling mill in Brackenridge that is schedued to begin production in the fourth quarter and $11.4 million in costs for the company’s Rowley, Utah, titanium sponge plant, which is is qualifying operations in order to meet customer quality requirements.
Chairman, President and CEO Rich Harshman said costs for the two plants are expected to reach about $18 million in the current quarter. Excluding those items and an estimated $19 million in inventory-related charges, he expects improved results in the third quarter.
“We continue to see signs of sustainable improvement and demand growth from most of our end markets,” Mr. Harshman said in a statement released by the company.
He said demand from the jet engine market improved in the second quarter while sales to the oil and gas market rose 30 percent.
The results were announced before Wall Street opened. On Monday, Allegheny Technologies shares closed at $45.44, off 26 cents. They are up 28 percent this year.
Len Boselovic: 412-263-1941 or firstname.lastname@example.org First Published July 22, 2014 12:00 AM